Deal of the Year – Small Cap
(Equity commitment – below $50 million)

David Jones (Anchorage Capital Partners)

Anchorage Capital Partners acquired Australian department store chain David Jones from South Africa’s Woolworths Holdings for about AUD 100m (USD 64m) – funded equally by debt and equity – in December 2022. It is a fraction of the AUD 2.1bn Woolworths paid for the business in 2014, but the real estate assets have been stripped out and an operational turnaround is required. The deal included a 10-year lease on the flagship store in Melbourne. Woolworths made several strategic missteps during its ownership period. Anchorage plans to optimise supply chains, enhance the brand portfolio, ramp up the loyalty programme, and increase online sales.

Endowus (Citi Ventures, EDBI, Lightspeed SEA, MUFG Innovation Partners, Prosus Ventures, SingTel Innov8, UBS Next)

Endowus, a Singapore-based digital wealth platform that provides financial advice and access to institutional investment solutions, raised USD 35m in funding in August 2023. Participants included Citi Ventures, MUFG Innovation Partners, UBS Next, EDBI, Prosus Ventures, Lightspeed Venture Partners, and Singtel Innov8. Total funding to date is USD 95m. Endowus claims to be the first digital advisor in Asia covering personal savings, private wealth, and public pensions. One-fifth of its assets are under Singapore’s Central Provident Fund Investment Scheme. Investment solutions span cash and money markets, fixed income, and equities, while a separate private wealth channel offers access to alternatives.

Helix Security Services, Quantum Security Services, ZX Security (Quadrant Private Equity)

Quadrant Private Equity rolled up New Zealand-based cybersecurity providers Quantum Security Services, ZX Security, and Helix Security Services in March 2023 support expansion into new geographies and service offerings. The size of the deal was not disclosed, but the investment came from Quadrant’s growth fund, which writes cheques of around AUD 50m (USD 32m). Quantum, ZX, and Helix’s services span governance, risk and compliance, penetration testing, cloud security, and cyber strategy. They are tracking an increase in the number and complexity of cyber threats. According to New Zealand’s Computer Emergency Response Team, data breaches increased eightfold between 2017 and 2021.

Kream (Altos Ventures, Mirae Asset Capital, Samsung Securities)

Kream, which was launched by Naver in 2020 as an e-commerce specialising in second-hand trading of limited-edition sneakers, secured a KRW 50.6bn (USD 38.8m) Series C extension in March 2023. Samsung Group led the round with support from Altos Ventures, Mirae Asset, and Axiom Asia. It came four months after a KRW 170bn Series C. Shoes and streetwear remain core to Kream’s offering, but it has diversified into luxury goods, appliances, and gadgets. M&A is also a priority. The company acquired rival reseller community Nike Mania in 2021 and then agreed to merge with Japanese counterpart Soda in October 2023.

Privy (KKR, MDI Ventures, GGV Capital, Telkomsel Mitra Inovasi, Okta Ventures, Singtel Innov8)

KKR led a USD 48m Series C round for Privy, an Indonesia-based developer of technology for legally binding digital signatures, in November 2022. Singtel Innov8 also came in as a new investor, while existing backers MDI Ventures, GGV Capital, and Telkomsel Mitra Inovasi re-upped. Total funding to date exceeds USD 66m. Licensed by local regulators, the company is Indonesia’s leading provider of digital signature and digital identity software. It processes over 40m digital signatures per year for 35m-plus verified users and 2,000 enterprise customers, including large financial institutions and fintech companies. Revenue is projected to exceed USD 20m in 2023.